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What Stimulus Means for Jobs Reports

What Jim Cramer thinks of the ADP numbers and what he's watching heading into the jobs report Friday.

The ADP private payrolls data was released Wednesday ahead of the jobs report on Friday

Private payrolls grew by 167,000 last month, according to ADP, well below the 1.034 million expected from economists surveyed by FactSet and a big drop from the revised 4.3 million positions created in June, though the June number was revised significantly higher from an originally reported 2.37-million gain.

The numbers from ADP paint a near-real-time picture of businesses struggling to re-open and re-hire workers amid the now five-month-long pandemic that has thrown a wrench in the U.S. economic wheel--and has also forced businesses to re-assess if and how they can operate.

"The labor market recovery slowed in the month of July," said Ahu Yildirmaz, vice president and co-head of the ADP Research Institute. "We have seen the slowdown impact businesses across all sizes and sectors."

By category, businesses with between 50 and 499 employees reported an outright decline of 25,000, for the month. Big business added 129,000 jobs, while firms with fewer than 50 workers added 63,000, ADP said.

All but 1,000 of the jobs came from the services sector, as professional and business services led with 58,000. The hospitality sector, which has borne the brunt of the pandemic and ensuing shutdowns, posted 38,000 new positions.

So, what did Jim Cramer make of the report and what is he watching next? It all comes down to stimulus

Watch the video above for more.

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